How Much Does an LLC Cost in Washington

It costs at least $180 to form an LLC in Washington. But these additional expenses could increase the total to over $3,000.

It's not unusual for Washington to report an impressive GDP growth. After all, Seattle, the state's largest city, is home to industry leaders like Amazon, Microsoft, and Boeing.

So, if you want to take advantage of a thriving business scene that attracts top talent from across the globe, it might be a good idea to form an LLC in Washington.

If you're wondering how much it costs, the Certificate of Formation will cost at least $180. More details below.

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Certificate of Formation

One-Time Fee: $180 (paper) | $200 (online)^[1]

To form an LLC in Washington, you must submit the Certificate of Formation to the Secretary of State. Once the documents are approved, your LLC will be recognized as a separate legal entity.

A Washington LLC's Certificate of Formation contains the following information, among other details:

• Limited Liability Company name
  
• Registered agent name and address
  
• Principal address
  
• UBI Number

Submitting the Certificate of Formation online is more expensive because it's processed as soon as possible; typically within five days. You can file by mail, but you'll have to pay for expedited services if you want it processed faster.

Foreign Registration

One-time Fee: $180 (paper) | $200 (online)^[1]

If you already have an LLC in another state and want to expand your business to Washington, register it as a foreign LLC.

To create a foreign LLC in Washington, you must file a Foreign Registration with the Secretary of State. Don't forget to attach a Certificate of Good Standing from your domestic state.

Initial Report

One-time Fee: $10^[2]

You must file an initial report within 120 days of forming your LLC. Filing is free if it's submitted with the Certificate of Formation. Otherwise, there's a $10 one-time fee.^[3]

An initial report is a public report that contains information about your business, including:^[3]

• Business name
  
• UBI number
  
• Principal office
  
• Nature of business

Most of the information above is already in the Certificate of Formation. However, you must repeat them in the initial report because this double-checks the accuracy of your information.

Annual Report

Annual fee: $70 (mail or online) | $95 (late filings)^[2]

Washington LLCs are required to file annual reports with the Secretary of State. It lets the government, banks, and anyone accessing public records know your business is still active.

Annual reports are due by the last day of the LLC's formation month. For example, if your LLC was formed on July 19, 2024, you must submit the annual report by July 31, 2025. You can file the annual report as early as 180 days before it's due.^[4]

Business Permits and Licenses

Annual Fee: At least $50 (1st yr) | $5 (renewal)^[5]

Washington is one of the few states that require a state-level business license. It costs $50 for the first year and must be renewed yearly for $5.^[5]

You might also need local licenses. The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could be renewable yearly.

Business Taxes

Cost: Typically .00471 of gross income^[6]

By default, the LLC itself doesn't pay income tax. Instead, the profits and losses are passed on to the owners. Then, you must pay the state income tax based on your taxable income.

However, there is no income tax in Washington.^[7] Instead, you must pay the business & occupation tax, which varies depending on gross income and the classification of your business. It's typically .00471 for retail businesses.^[6]

On top of that, you must also pay federal income taxes.

2024 Federal Income Tax Rates:^[8]

Don't forget the 15.3% federal self-employment tax.^[9] This tax covers Social Security and Medicare contributions.

Optional Fees

While the fees below are generally optional, some are unavoidable depending on your business needs.

For example, obtaining a Certificate of Good Standing is often necessary when opening an LLC bank account.

Expedited Services

Cost: $100 to $150^[2]

Washington offers expedited services for most of its filings. The fee depends on how quickly you want your document processed:^[2]

• $100: Typically processed within three business days
  
• $150: Same-day service

However, same-day service may not always be available.

Registered Agent Services

Annual Cost: $0, or $100-$300/yr

In Washington, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.

You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Washington. You must also be available to receive documents during business hours.

However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.

Operating Agreement

Cost: $0, or up to $500+

LLCs in Washington are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.

An LLC operating agreement contains the following:

• The roles and responsibilities of each member
  
• How new or departing members will be treated
  
• How business profits and losses will be divided

Ideally, you should already have a signed Operating Agreement before forming an LLC in Washington. But if your LLC is already formed, you can always draft it yourself after.

Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.

Employer Identification Number

Cost: $0, or $50 to $99

Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.

You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:

• Northwest Registered Agent: $50
  
• Bizee: $70
  
• ZenBusiness: $99

Single-member LLCs in Washington don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.

BOI Report

One-Time Cost: $0, or up to $149

The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.^[10]

It includes information about the LLC's beneficial owners, including name, birth date, and address.

FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:

• Northwest Registered Agent: $25
  
• LegalZoom: $149
  
• ZenBusiness: $149

You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.

LLC Name Reservation

Cost: $30^[2]

Reserve your desired name first if you already have a business name but aren't ready to form an LLC. This will prevent others from using that name for 180 days. Unfortunately, you can't renew the name reservation even if you need more time.

Additionally, the name reservation fee is non-refundable.^[11] Don't forget to review Washington's detailed list of naming regulations to prevent your reservation from getting rejected. For instance, an LLC name must include LLC, Ltd., or a similar abbreviation.

Trade Name

Cost: $5^[12]

A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state.

Some LLCs use a DBA for branding purposes. It's also ideal if you want to use a name without "LLC" at the end.

DBAs in Washington don't have to be renewed. Just register a trade name when you file a business license application for your LLC. Then, it remains active until you cancel it.

Statement of Correction

Cost: $30^[13]

After your Washington LLC application is approved, review all the details of the Certificate of Formation carefully.

If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Statement of Correction. Only one record can be corrected per filing.^[13]

Amended Certificate of Formation

Cost: $30^[2]

Your Washington LLC's Certificate of Formation contains specific details about your business. Should these details change, you must file an amendment to the Secretary of State.

File the Articles of Amendment if you:

• Change the LLC name
  
• Have a new principal address
  
• Appoint a new registered agent

Certificate of Good Standing

Cost: $20^[2]

A Certificate of Good Standing is an official document by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.

You might need a Certificate of Status to:

• Open a bank account
  
• Apply for business loans
  
• Qualify for business insurance
  
• Conduct business as a foreign LLC

Certified Copies

Cost: $10 + copy fees^[2]

Certified copies of documents verify that your LLC is legitimate and that its details are accurate.

You might need these for circumstances like opening a business bank account or expanding your LLC in another state.

Additionally, some LLCs keep certified copies of their initial Certificate of Formation and Amendments (if any) for recordkeeping purposes.

Business Website Domain

Annual Fee: $10 to $20

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.

Business Insurance Premiums

Cost: Varies

Most employers in Washington must have workers' compensation insurance. However, unlike in other states, you can't purchase one from a private insurer.^[14]

Instead, Washington requires employers to pay the state's Department of Labor & Industries. A small portion is also deducted from employees' paychecks.

You might also be required to get other types of insurance:

• General liability insurance
  
• Commercial property insurance
  
• Professional liability insurance
  
• Cyber liability insurance

The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

Bottom Line

You need at least $180 to form an LLC in Washington. However, that's just the beginning of your expenses.

Annual fees include the $70 annual report and the $5 state-level business permit renewal.

The total cost of forming an LLC in Washington will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.

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